USDCAD technical outlook showed the pair slightly lower on the day, but buyers returned after the price held a key support zone.
The pair did not face heavy selling despite weekend developments in the Middle East. However, the source said the conflict appeared to be moving toward a resolution. As a result, market focus may turn back to trade talks and possible changes to the USMCA agreement.
Recent tensions between the U.S. and Canadian administrations could bring trade headlines back into focus for the pair. Meanwhile, price action in the Asian-Pacific session gave sellers a chance to press lower. The pair briefly moved under its rising 100-hour moving average at 1.39599.
USDCAD Technical Outlook Near Support
Downside momentum faded before the pair could break a swing area between 1.3948 and 1.3966. In addition, the 200-hour moving average near 1.3937 added another support point. That failure to break lower helped bring buyers back into the market.
Since then, USDCAD has climbed back above the 100-hour moving average. It also moved above the top of the swing area. Therefore, buyers kept the near-term technical edge.
Key Levels for Sellers to Watch
For sellers to regain short-term control, they need to push the pair back below the swing area. After that, they would need a move under the 200-hour moving average at 1.3937. Until that happens, the USDCAD technical outlook still favors buyers in the near term.
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